Archives for June 2011

Ten Ways to Get the Most out of Zoning by Joe Szabo, Scottsdale Real Estate Team

June 30, 2011 szabogroup

Joe Szabo Scottsdale Homes for Sale

By Joe Szabo, Scottsdale Real Estate Team

1) Don’t expect more out of zoning than is realistic. Many other factors, like the market and availability of infrastructure, are stronger determinants of land development success.

2) Zoning’s just a small part of a much larger federal, state, and local system of regulations that govern land use. To have success, you must learn how to juggle the various permits, restrictions, and approvals required to develop land.

3) There are usually several different solutions to any given zoning problem. Always consider alternative strategies, as well as how best to employ them.

4) Thoroughly research zoning regulations. You may find a loophole hidden away in some unexpected corner, like a graphic table or an appendix.

5) Read each word carefully. Properly understanding precise definitions can mean great value (or misunderstanding them, tragic loss).

6) Modest changes in zoning ordinances can sometimes mean vastly increased (or decreased) profits. Know which is which.

7) State and federal laws can sometimes override local regulations. Make sure you know if this applies in your situation.

8) Make sure your neighbors are obliged to provide written notice of any planned changes to their property, to prevent any unpleasant surprises. Consider instituting private covenants so that your neighborhood is protected from such unwanted alterations.

9) Before any local zoning proceedings, make sure you’re thoroughly prepared for any argument, and cultivate as many friends in high places as you can. This may be your only chance to win favorable changes.

10) Develop strategies for every administrative proceeding and litigation so you know exactly what to do to maximize your potential for success.

Please note that this Scottsdale Real Estate Blog is for informational purposes and not intended to take the place of a licensed Scottsdale Real Estate Agent. The Szabo Group offers first class real estate services to clients in the Scottsdale Greater Phoenix Metropolitan Area in the buying and selling of the best Luxury homes in Arizona. Award winning Realtors and Re/MAX top producers and best real estate agent for Luxury Homes in Scottsdale, The Szabo group delivers experience, knowledge, dedication and proven results. Contact Joe Szabo at 480.688.2020, [email protected] or visit www.scottsdalerealestateteam.com to find out more about Scottsdale Homes forSale and Estates forSale inScottsdale and to search the Scottsdale MLS for Scottsdale Home Listings.

Using Private Annuity Trusts in Real Estate Transactions by Joe Szabo, Scottsdale Real Estate Team?

June 27, 2011 szabogroup

Joe Szabo Scottsdale Homes for Sale

By Joe Szabo, Scottsdale Real Estate Team

Owners of appreciated property can use private annuity trusts to accomplish the following:

1) Defer capital gains taxes on the sale of a property.

2) Defer the tax on recapture of depreciation.

3) Create a lifetime stream of income for an individual or jointly for both spouses.

4) Defer receipt of the annuity payments (and taxes) until retirement.

5) Create a family investment trust with the remainder going to the owner’s family or heirs.

6) Provide a financing vehicle for family members.

7) Remove an asset from the owner’s taxable estate.

A private annuity trust simply describes a situation in which one person (the annuitant) gives another person (or entity) a sum of money or other assets in exchange for a promise to provide a stream of payments in the future (an annuity contract). It’s a vehicle by which a property owner can sell appreciated real estate, create a stream of income for life, and defer the capital gains taxes. When appreciated real estate is exchanged for a private annuity contract, no capital gains taxes or recapture of depreciation are triggered. Instead, they’re deferred until the future payments are received by the annuitant.

The IRS allows you to defer receipt of payments any time until you’re 70½; deferring payments also means deferring tax liability. In most cases, private annuities are between parents and children, but that’s not required.

Unlike 1031 exchanges, private annuity trusts have not caught on very well with the real estate community as an option for tax deferral. This is probably because it’s a complicated legal maneuver, which generally necessitates bringing in more advisors.

In addition to its capital gains tax advantages, private annuity trusts can also help reduce estate tax liability. All you have to do is transfer an asset from your estate to a private annuity trust so it won’t be counted upon your death. A private annuity trust is an irrevocable non grantor trust, which means that once it’s set up it’s difficult and expensive to change.

Annuity payments are for the lifetime of the annuitant; once the annuitant dies, the trustee is responsible for distributing any remaining trust assets to the predetermined beneficiaries. Because tax liability can be deferred until you’re 70½, a private annuity trust can work just like an IRA or any other retirement investment vehicle. The advantage is that it offers more flexibility in terms of choice of investment.

One of the best ways to use a private annuity trust is to buy commercial annuities or appreciable assets. Commercial annuities don’t offer the growth potential of other types of investments, but they do provide security and additional tax deferral. An attorney will charge around $3000 to execute an annuity contract.

A professional trustee will charge approximately 1 to 1½% of the trust assets (under a million) to take care of the day-to-day affairs of the trust. Over that amount, the fee may be negotiated. A responsible, competent adult child, however, may also execute these responsibilities. An accountant that specializes in trusts will have to be hired to handle your annual tax returns.

Decorating Tips for Bedrooms by Joe Szabo, Scottsdale Real Estate Team

June 24, 2011 szabogroup

By Joe Szabo, Scottsdale Real Estate Team

A bedroom is a room that is completely your own, and should reflect you more than just about any other room, especially if this is where you will be spending a majority of you time. Your bedroom should be what you want to see when you open your eyes in the morning. Do you like cool, calming colors to ease you into the day, or warm bright colors to give you a jump start? Here are some things to consider when decorating the master bedroom.

1. The height of the master bead headboard should be seen above the pillows of the bed. A slip cover of a contrasting color and smaller pillows can help visually enhance this.

2. A bed skirt to match the quilt or headboard will cover the frame of the bed and offer a more flow to the room. Some newer beads do not need a bed skirt at all, but a box spring cover.

3. Pillows are a nice decorative accessory. If this is your style, decide weather you want a more simple or formal style; a simpler style might have just a few, bigger pillows, while a more elegant style might a smaller, more detailed pillows. However, no matter the style you choose, you do not want to have too many pillows.

4. Different comforters can offer different looks from season to season, and can reduce some of the sun damage. Maybe try a darker color for summer and a brighter color for winter, to mix things up.

5. Small night stands might be suitable for smaller beds, however, will not compensate for larger beds. Try using a chest or larger side table for King or Queen beds, these will be more to scale.

6. It is often a good idea to buy two sets of sheets that match your bedroom décor, because the first is bound to get worn out. And when sheets are changed in and out regularly, they last longer.

7. Try decorating the end of a bed with a chest or table. A pair of love seats or a desk can also liven a room up, add dimension, and allow for a place to sit or work in you bedroom.

8. Painting a ceiling the same color between a bedroom and a bathroom (or any other alternative space) will link them together and give the room a more open, spacious feel. Also, if you want a room to look open, but want the two spaces to be painted different colors, try picking out three colors that go well together and assign on the bedroom, one to the alternative space, and one to the connecting ceiling.

9. Throwing a mirror toped table into the mix will add extra sparkle and shine to the room, and gives the look a creative touch. This goes especially will with vanity sets or night stands.

10. If looking to make a room seem more romantic or add an extra touch, try putting up a faux canopy. Even if your bed is not a four-post, you can still hang large metal rings from the ceiling and drape fabric though it. To add a dramatic touch, puddle the fabric on the floor.

Please note that this Scottsdale Real Estate Blog is for informational purposes and not intended to take the place of a licensed Scottsdale Real Estate Agent. The Szabo Group offers first class real estate services to clients in the Scottsdale Greater Phoenix Metropolitan Area in the buying and selling of Luxury homes in Arizona. Award winning Realtors and Re/MAX top producers and best real estate agent for Luxury Homes in Scottsdale, The Szabo group delivers experience, knowledge, dedication and proven results. Contact Joe Szabo at 480.688.2020, [email protected] or visit www.scottsdalerealestateteam.com to find out more about Scottsdale Homes for Sale and Estates for Sale in Scottsdale and to search the Scottsdale MLS for Scottsdale Home Listings.

For Sale by Owner (FSBO) by Joe Szabo, Scottsdale Real Estate Team

June 21, 2011 szabogroup

By Joe Szabo, Scottsdale Real Estate Team

When buying a home that is FSBO, the steps of buying any other home still apply; just a few more issues are to be kept in mind. Overpaying for a FSBO is a common mistake, for instance neighboring problems or perspective problems are easily overlooked until eyes are opened by living in the area (perhaps an apartment complex is about to be built right across the street).

In this method of sales, the seller will not drop the price right away, and often relevant data about the area is the only way to persuade for lower prices. Many properties also come with problems that a broker says will affect the price of the home, and that is the reason the seller decided to sell themselves.

Never under negotiate, first time buyers often overlook weather the market is in their favor or not, and a seller should never talk a buyer into paying more than he/she wants to or can afford to.

Required disclosures are, by the way, still required even though the seller did not go through a broker, and therefore, earnest money should be given to a different third party member (i.e. the escrow company), never directly to the seller. Make sure the title policy is taken care of (varies from state to state on who is responsible for this, the buyer or seller).

All documents should be organized and all correct contracts and forms (from an escrow agent or attorney) should be collected and ready to sign.

Also, do not take the sellers word. A professional home inspection and a final walk-through are critical and can save a buyer hundreds upon thousands of dollars if there is a major problem or something that makes the home not worth buying.

Please note that this Scottsdale Real Estate Blog is for informational purposes and not intended to take the place of a licensed Scottsdale Real Estate Agent. The Szabo Group offers first class real estate services to clients in the Scottsdale Greater Phoenix Metropolitan Area in the buying and selling of Luxury homes in Arizona. Award winning Realtors and Re/MAX top producers and best real estate agent for Luxury Homes in Scottsdale, The Szabo group delivers experience, knowledge, dedication and proven results. Contact Joe Szabo at 480.688.2020, [email protected] or visit www.scottsdalerealestateteam.com to find out more about Scottsdale Homes for Sale and Estates for Sale in Scottsdale and to search the Scottsdale MLS for Scottsdale Home Listings.

Tips for Decks in your Scottsdale Home by Joe Szabo, Scottsdale Real Estate Team

June 17, 2011 szabogroup

By Joe Szabo, Scottsdale Real Estate Team

Decks of a home can offer a Zen-like escape, or provide a colorful party scene for entertaining. Whatever the purpose, there are a few things to keep in mind when decorating a deck, or deciding how it should be built.

Lighting can be used strictly for purpose and security, or it can be arranged decoratively; however, lighting-gone-wrong can create serious glare problems at night and take away from the aesthetics of your deck. Choosing shielded lighting fixtures, placing lights out of direct eye sight, and keeping the overall voltage low, will help prevent this problem. Remember at night, a little light goes a long way.

Patio furniture can be either portable or built-in, which ever you choose, make sure it is most practical for your environment. If you entertain frequently, built in furniture can free up a lot of floor space, but does not allow for the furniture to be moved around. If you like upholstered outdoor furniture, but it rains a lot in your area, furniture that can be moved out of bad weather would be best. Also, when considering built in furniture, do not forget to plan drainage carefully.

Another aspect to consider, that can be either portable or built in, are planters. Built in planters add a personalized look, but can cause drainage problems. Movable containers can bring annual, perennial, and even vegetable plants to any corner or outdoor table, however, to have a bunch of pots sitting around is an easy way to use up room and contribute to a cluttered look. Consider a combination of both looks.

Railings are another important part of a deck, especially if it is more than 30 inches above ground level. Railings add decoration, and provide safety, especially to smaller children. To blend well, they should coordinate with the look of the house, and should be at least 36 to 42 inches high, with no gaps wider than 4 inches. This will create a safe, yet beautiful environment.

Please note that this Scottsdale Real Estate Blog is for informational purposes and not intended to take the place of a licensed Scottsdale Real Estate Agent. The Szabo Group offers first class real estate services to clients in the Scottsdale Greater Phoenix Metropolitan Area in the buying and selling of Luxury homes in Arizona. Award winning Realtors and Re/MAX top producers and best real estate agent for Luxury Homes in Scottsdale, The Szabo group delivers experience, knowledge, dedication and proven results. Contact Joe Szabo at 480.688.2020, [email protected] or visit www.scottsdalerealestateteam.com to find out more about Scottsdale Homes for Sale and Estates for Sale in Scottsdale and to search the Scottsdale MLS for Scottsdale Home Listings.

What is a Home Warranty by Joe Szabo, Scottsdale Real Estate Team?

June 14, 2011 szabogroup

By Joe Szabo, Scottsdale Real Estate Team

A home warranty ensures—or is supposed to ensure—that when something goes wrong with the house (the roof starts to leak, something breaks, etc.) there is a number to call, report the problem, and have it fixed for free or for a pre-arranged cost..

However, there are often unexpected fees attached and can be more headaches than what would at first be expected. Though we recommend them, it’s important to know just what your home warranty covers and what to add such as appliances, pool equipment and more. This is where a seasoned professional like Joe Szabo and the Scottsdale Real Estate Team can advise you. There are many different kinds of home warranties and they also vary in coverage from state to state.

One kind of home warranty is an existing home warranty. Existing home warranties, unlike new home warranties, do not cover everything from appliances to major structural problems. They are more like service contracts and are often regulated by the state. Some warranties allow you to pay extra to cover some appliances, pool equipment or air conditioning units.

Instead of covering the cost to fix a broken kitchen appliance or faulty wiring, the warranty often covers any costs that exceed a deductible. These warranties typically cover anything from the water heater to interior plumbing, excluding the major structural aspects of the home.

Home warranties are usually paid for out of the closing proceeds, and sometimes a seller’s broker will purchase the warranty. Keep in mind these warranties do not cover service charges, should there be a toll free number to call when something goes wrong (usually ranging from thirty to eighty dollars per call).

Many buyers wonder if existing home warranties are even worth the trouble; and while they do carry a deductible, they will relieve much of the cost when an expensive item (such as the furnace or air conditioning) goes out.

Please note that this Scottsdale Real Estate Blog is for informational purposes and not intended to take the place of a licensed Scottsdale Real Estate Agent. The Szabo Group offers first class real estate services to clients in the Scottsdale Greater Phoenix Metropolitan Area in the buying and selling of Luxury homes in Arizona. Award winning Realtors and Re/MAX top producers and best real estate agent for Luxury Homes in Scottsdale, The Szabo group delivers experience, knowledge, dedication and proven results. Contact Joe Szabo at 480.688.2020, [email protected] or visit www.scottsdalerealestateteam.com to find out more about Scottsdale Homes for Sale and Estates for Sale in Scottsdale and to search the Scottsdale MLS for Scottsdale Home Listings.

What is a Title Search by Joe Szabo, Scottsdale Real Estate Team?

June 10, 2011 szabogroup

By Joe Szabo, Scottsdale Real Estate Team

A title search is what proves the seller of a home actually owns the home and, therefore, has the right to sell it. Lawyers, title companies, or title specialists conduct title searches. They examine a chain of title of a home, working from owner to owner until they reach the original owner or point where the land was granted.

If documents have been correctly reordered over the years, title searches should lead all the way back to when the area was first settled. If the local government has not yet computerized their records, this process must be preformed manually and could take hours of research.

Title searches protect the buyer from any “clouds” surrounding the title of the home. In other words, forged deeds, deed by minor, lack of jurisdiction over property in judicial proceedings, and any other shady areas will be revealed. While problems with title do not generally come up, they are a big hassle when they do.

Title insurance is a premium paid one time, the cost depending on the sales price of the home. Sometimes the seller will pay for the title search. Lenders will make sure the buyer obtains title insurance that covers the lender, and it is always a good idea to get an owners policy, which will insure the buyer is covered in event of an error.

Please note that this Scottsdale Real Estate Blog is for informational purposes and not intended to take the place of a licensed Scottsdale Real Estate Agent. The Szabo Group offers first class real estate services to clients in the Scottsdale Greater Phoenix Metropolitan Area in the buying and selling of Luxury homes in Arizona. Award winning Realtors and Re/MAX top producers and best real estate agent for Luxury Homes in Scottsdale, The Szabo group delivers experience, knowledge, dedication and proven results. Contact Joe Szabo at 480.688.2020, [email protected] or visit www.scottsdalerealestateteam.com to find out more about Scottsdale Homes for Sale and Estates for Sale in Scottsdale and to search the Scottsdale MLS for Scottsdale Home Listings.

Credit and Credit Cards by Joe Szabo, Scottsdale Real Estate Team

June 3, 2011 szabogroup

By Joe Szabo, Scottsdale Real Estate Team

Cash is fast becoming a thing of the past. Americans use Credit or Debit Cards for everything from renting a car to buying groceries. In fact, without a Credit Card it is almost impossible to order Airline Tickets, Internet Shopping or order anything by phone such as Concert or Theater Tickets.

Credit Cards are simply a convenience. You use the card for your purchases all month and pay one bill. It is basically a line of credit with a bank. Some Credit Cards have annual fees, but if you pay the balance every month you will avoid interest charges. If you choose to make payments on a larger purchase you can pay a smaller amount each month and pay interest on the remaining balance. The Credit Card company will have a minimum amount you will need to pay based on the total amount due.

Interest Rates, the amount of your Line of Credit and other fees are all based on your Credit History. These are reports that tell the banks how well you pay your debts. If you pay everything in full and on time you will have a high score. If you are late and carry large balances you will have a lower score. With a lower score the banks will not be so ready to extend you a large line of Credit.

The problem with new people to the United States is they have no Credit History. Even if you have Credit in your country it does not show up on the American reports. The first thing you can do is get a secured credit card. This is where you guarantee the card with a bank account in which the money stays, such as a Certificate of Deposit (CD) or a Savings Account. Another easy way to build credit is to take out a loan at your bank against the money you have on deposit and pay it back over two to three months. You will pay a little interest but you will have established credit and the bank will report it in your favor.

Many bank Credit Cards are also Debit Cards and can be used either way. When you use it as a Debit Card the money is immediately taken out of your checking account and you will not get a bill at the end of the month. You will just see the transactions on your banks statement. The store clerk will ask you if the card is going to be used as Debit or Credit. If you say ‘Debit’, you will swipe the card, put in your secret code and your transaction is complete. If you say ‘Credit’, you will swipe your card and sign your name on the receipt.

Most Credit Cards work the same whether they are Master Card, Visa, Discover or American Express. No matter which card you choose, a Credit Card will help make your life in the United States more convenient.

Please note that this Scottsdale Real Estate Blog is for informational purposes and not intended to take the place of a licensed Scottsdale Real Estate Agent. The Szabo Group offers first class real estate services to clients in the Scottsdale Greater Phoenix Metropolitan Area in the buying and selling of Luxury homes in Arizona. Award winning Realtors and Re/MAX top producers and best real estate agent for Luxury Homes in Scottsdale, The Szabo group delivers experience, knowledge, dedication and proven results. Contact Joe Szabo at 480.688.2020, [email protected] or visit www.scottsdalerealestateteam.com to find out more about Scottsdale Homes for Sale and Estates for Sale in Scottsdale and to search the Scottsdale MLS for Scottsdale Home Listings.